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Feb 28, 2022
WD-40 Q2 2022 Earnings Report
WD-40's net sales increased by 16% and diluted EPS was reported at $1.41.
Key Takeaways
WD-40 Company reported a strong second quarter with a 16% increase in net sales compared to the prior year fiscal quarter. Diluted earnings per share were $1.41, up from $1.24 in the prior year. The company is facing a challenging inflationary environment, which has deteriorated gross margin.
Total net sales for the second quarter were $130.0 million, an increase of 16 percent compared to the prior year fiscal quarter.
Net income for the second quarter was $19.5 million, an increase of 13 percent compared to the prior year fiscal quarter.
Diluted earnings per share were $1.41 in the second quarter, compared to $1.24 per share for the prior year fiscal quarter.
Gross margin was 50.4 percent in the second quarter compared to 55.4 percent in the prior year fiscal quarter.
WD-40
WD-40
WD-40 Revenue by Segment
WD-40 Revenue by Geographic Location
Revenue by Segment
Americas Revenue
CapyFin.comEIMEA Revenue
CapyFin.comAsia-Pacific Revenue
CapyFin.comRevenue by Geographic Location
Americas Revenue
CapyFin.comEIMEA Revenue
CapyFin.comAsia-Pacific Revenue
CapyFin.com Forward Guidance
The Company issued the following updated guidance for fiscal year 2022: Net sales growth is projected to be between 7 and 12 percent with net sales expected to be between $522 million and $547 million. Diluted earnings per share is expected to be between $5.14 and $5.27 based on an estimated 13.7 million weighted average shares outstanding.
Positive Outlook
- Net sales growth is projected to be between 7 and 12 percent.
- Net sales expected to be between $522 million and $547 million.
- Gross margin percentage for the full year is expected to be between 50 and 51 percent.
- Advertising and promotion investments are projected to be between 5 and 6 percent of net sales.
- The provision for income tax is expected to be between 20 and 21 percent.
Challenges Ahead
- Net income is projected to be between $70.7 million and $72.5 million.
- Diluted earnings per share is expected to be between $5.14 and $5.27 based on an estimated 13.7 million weighted average shares outstanding.
- Guidance does not include any future acquisitions or divestitures or the impact of fluctuating foreign currency exchange rates.
- Assumes crude oil costs will be between $100 and $120 per barrel.
- Unanticipated inflationary headwinds and other unforeseen events may further impact the Company’s financial results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income